OFWs winning big: Pag-IBIG MP2 delivers record earnings

Manila: Is the Pag-Ibig MP2 (Modified Pag-IBIG 2) program a good and risk-free investment vehicle for overseas Filipino workers (OFWs)?

If a 7% per annum return sounds good for you, then it's probably worth considering. That was the the MP2 yield in 2024.

So far, mid-2025 projections align with this, as voluntary MP2 inflows hit ₱73.74 billion last year, underscoring member confidence.

While full-year MP2 rates remain pending for 2025, (typically announced early the following year), historical trends and the fund's charter — mandating at least 70% of income as dividends — signal sustained high yields, likely hovering near or above 7%.

Pag-IBIG Fund, known as the Home Mutual Development Fund (HMDF), is a state-backed investment arm meant to fund home mortgages, is owned by its members.

Its current President and CEO, Marilene Acosta, was appointed in September 2022, marking a long career with Pag-IBIG Fund, as she has been working for the agency for over 40 years. 

With assets eyeing ₱1.8 trillion ($31.3 billion) by end-2025, and 1.5 million new members targeted, MP2 isn't just savings — it's a pathway to financial resilience and homeownership in an uncertain economy.

For OFWs who want to park a part of their income to this fund, Pag-IBIG offers an easier way.

To maximise MP2 in 2025, experts recommend "automating contributions" via payroll or apps.

And for members residing in the Philippines, this could help them leverage the 13th-month pay for lump sums, and reinvesting at maturity for uninterrupted compounding.

Given the current landscape of Philippine savings options, the Pag-IBIG MP2 program stands out as a beacon for voluntary savers seeking superior returns.

MP2 was launched to complement mandatory regular savings, and offers a five-year maturity term with flexible contributions starting at ₱500.

Yes, the dividends are tax-free dividends.

More imporantly, it's a government-backed security.

Yes.

Members — ranging from active workers and OFWs to freelancers and retirees — it's a strategic tool to amplify long-term wealth, especially as the fund achieves unprecedented financial milestones.

The rates show a generally upward trend, especially since 2022, reported to be at their highest levels since the pandemic. 

The 2024 dividends were noted to be a record-high amount, benefiting many members, according to reports from February 2025.

The MP2 savings program offers a higher dividend rate compared to the regular Pag-IBIG savings program. 

This translates to compelling growth: a ₱1,000 monthly contribution (₱12,000 per year) could theoretically balloon to over ₱71,000 by maturity, yielding more than ₱11,000 in earnings through compounding.

The rate reflects Pag-IBIG's prudent investments in low-risk assets, outpacing inflation and regular savings at 6.60%.

Overall, the fund's stellar year saw net income soar to ₱67.52 billion ($1.17 billion) — a 36% jump from ₱49.79 billion in 2023 — fuelled by heightened loan disbursements (₱129.73 billion in home loans) and membership collections totalling ₱132.81 billion.

This windfall enabled a record ₱55.65 billion (about $1 billion) dividend payout, the highest in Pag-IBIG's 44-year history, with 82% of net income redistributed to members.

In the first half of 2025, and momentum from 2024 persists.

In 2025, Pag-IBIG reported a groundbreaking ₱28.04 billion net income from January to June, up 15% year-over-year, with gross income climbing 12% to ₱44.39 billion.

Total assets expanded 7% to ₱1.14 trillion ($19.8 billion).

Disclaimer: This content is provided for informational purposes only and does not constitute investment advice. Please consult a licensed financial advisor for guidance tailored to your individual risk profile.